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Gilead Sciences Collaborates with LEO Pharma on Inflammatory Disease Treatments
(Reuters) – Gilead Sciences has announced a significant partnership with Denmark-based LEO Pharma aimed at advancing treatments for patients suffering from inflammatory diseases.
The collaboration paves the way for LEO Pharma to potentially earn up to $1.7 billion, which includes an initial payment of $250 million from Gilead. This financial commitment underscores the importance of this partnership in the pharmaceutical landscape.
In exchange for its contributions, Gilead will secure the global rights to develop, manufacture, and market a small molecule oral therapeutic program targeting STAT6 (signal transducer and activator of transcription 6). According to Gilead, preclinical studies suggest that targeting STAT6 could prove beneficial for a wide array of inflammatory conditions, including atopic dermatitis, asthma, and chronic obstructive pulmonary disease (COPD).
Additionally, LEO Pharma stands to gain tiered royalties, which could range from the high single digits to the mid-teens percentage on sales generated from topical treatments related to the STAT6 program.
While the partnership has promising implications, Gilead has indicated that the transaction may lead to a decrease in its GAAP and non-GAAP earnings per share for the fiscal year 2025, estimated at around $0.15 to $0.17.
“By partnering with LEO Pharma, we are optimistic about unlocking the potential of the STAT6 pathway to introduce an oral treatment option for patients dealing with chronic inflammatory diseases,” remarked Flavius Martin, Gilead’s executive vice president of research.
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